While year-over-year inflation is at 3.3%, still above the Federal Reserve’s 2% target, the price declines are an encouraging sign that costs are heading in the right direction. Here are the steepest price cuts over the past year, expressed as a percentage.
Prices for used cars and used trucks rose 40.5% in 2021, symbolizing pandemic-related inflation, according to Consumer Price Index (CPI) data. Prices have since fallen, and have been declining steadily over the past two years.
The price decline is mainly due to used cars flooding the market, which is essentially the opposite of what happened during the COVID-19 pandemic: A used car worth $25,000 in 2023 is currently selling for $22,675, a discount of $2,325 based on CPI data.
The cost of dishes and crockery Sensitive to home salesThat’s because many people upgrade their kitchen equipment when they move, and fewer homes are for sale, which could also be a factor in the drop in the cost of crockery and cutlery.
Because tableware is easier to manufacture than other industries, there are many competitors, many of whom have drastically reduced their prices in the last year. It is common to see major retail chains selling tableware sets as part of their clearance sales.
TV prices have been trending downwards over the past 12 months, after recording an 11.5% year-over-year drop as of May 2023. This reflects a longer-term trend of TVs becoming cheaper to manufacture, leading to falling prices.
Another factor is data collection from “smart TV” interfaces. Generate revenue for manufacturersThis can help bring the price of your TV down even further.
Bargains are expected to be found on ovens, refrigerators, freezers, dishwashers and other large appliances, with prices down 3.5% so far in 2024, following a 7.3% drop in 2023. Over the past 12 months, prices of major appliances have fallen 6.2%.
This is due to several factors: Factory efficiency Reduced production costsIt’s becoming easier for manufacturers to discount large appliances. The industry is highly competitive and discounting is common. In addition, the slowdown in the housing market is Declining desire to sellBecause people tend to buy home appliances when they move into a new house.
Late demand for travel and higher fuel prices caused airfares to rise 25% in 2022, but have since stabilized somewhat.
Lower fuel prices are helping to reduce business travel, increase airline capacity and reduce the overall cost of flying. Relieving demand Number of flights compared to 2022.
Do you want to be a more confident communicator? Take CNBC’s new online course Becoming an Effective Communicator: Mastering Public SpeakingWe’ll teach you how to speak clearly and confidently, how to ease your nerves, what to say and what not to say, and body language techniques to make a great first impression. Sign up now and use code EARLYBIRD to get an introductory discount of 30% off until 7/10/2024.
plus, Sign up for the CNBC Make It newsletter Learn tips and tricks for success in work, money and life.